Priner Serviços Industriais (PRNR3) Q3 2024 earnings summary

Executive summary

• Q3 2024 pro forma revenue was R$392.7m and EBITDA R$58.1m, with recovery in activity and margins; Real Estruturas contributed R$133.5m revenue and R$22.0m EBITDA.

• Unaudited pro forma results include Real Estruturas from July 2024; legal accounting consolidation began October 1.

• Acquisition of Real Estruturas established Industrial Assembly as the fourth business unit.

Financial highlights

• Net revenue was R$392.7m, up 46.0% YoY and 91.3% QoQ; excluding Real Estruturas, revenue fell 3.6% YoY and rose 26.3% QoQ.

• Gross profit reached a record R$88.9m, up 72.5% YoY; excluding Real Estruturas, gross profit was R$61.8m, up 19.9% YoY and 58.4% QoQ.

• EBITDA was R$58.1m, up 96.3% YoY and 228.6% QoQ, at a 14.8% margin; excluding Real Estruturas, EBITDA was R$36.1m, up 21.9% YoY.

• Net profit was R$20.8m versus R$2.3m in 3Q23 and a R$2.7m loss in 2Q24; net margin was 5.3%.

• Net finance cost rose to R$15.7m, up 26.0% YoY and 51.8% QoQ, mainly due to interest on acquisition seller financing.

Outlook and guidance

• Positive 4Q24 expectations were supported by R$489.3m in new 3Q24 contracts, exceeding first-half contract wins, and 650 open vacancies at quarter-end.

• ~80% of 2025 revenue is expected from Oil & Gas, Pulp and Paper, Sugar-Energy and Mining.

• Continued-growth strategy focused on incremental value, supported by people, resources, an operating platform, customer and investor confidence, quality culture and dynamic strategy.